Needham Keeps Buy Rating on Carvana (CVNA) After Q3 Results

Carvana Co. (NYSE:CVNA) is one of the 15 Best Aggressive Growth Stocks to Buy Right Now. On October 30, Needham reiterated its Buy rating on Carvana Co. (NYSE:CVNA) with a price target of $500. This decision came after the company reported its Q3 2025 results.

In Q3 2025, Carvana Co. (NYSE:CVNA) sold nearly 156,000 retail units, 44% higher than the same time last year. The company’s revenue grew 55% year-over-year to reach $5.65 billion. Both of these are all-time quarterly records. This performance was driven by the company’s focus on identifying further fundamental gains, operating efficiencies, developing foundational capabilities, and still pushing for growth. The company’s revenue growth exceeded retail units sold growth mainly because of higher average selling prices.

Needham sees Carvana Co. (NYSE:CVNA) as the top large-cap growth opportunity in its coverage. The research firm believes the company has a clear, long-term growth path against what it views as a cautious near-term unit guidance compared to recent results.

Additionally, Needham pointed out that Carvana Co. (NYSE:CVNA) consistently executes its plans and offers long-term guidance. This shows the company’s strong business model and its growing advantage over competitors, who have shared more volatile performances.

The research firm compared the company to established market leaders in large markets like streaming and food delivery. According to Needham, Carvana Co. (NYSE:CVNA) should earn multiple expansion as a “long-term compounder.”

Carvana Co. (NYSE:CVNA) operates a platform for buying and selling used cars. It allows customers to browse, research, and purchase vehicles online. The company offers services like financing, trade-ins, and delivery.

While we acknowledge the potential of CVNA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.